In Re Marriage of Shelstead

In Boggs v. Boggs (1997) 520 U.S. 833 [ 117 S.Ct. 1754 , 138 L.Ed.2d 45 ], the United States Supreme Court held ERISA preempts state law allowing a nonemployee spouse to transfer by testamentary instrument an interest in undistributed pension plan benefits. In this case, we consider the related question whether a state court in a dissolution action may properly enter a domestic relations order providing the nonemployee spouse with the right to name a successor in interest to receive her share of undistributed community property pension benefits upon her death. We hold the order in question is not a qualified domestic relations order (QDRO) and therefore it is an invalid alienation of pension benefits under ERISA. Specifically, we conclude the order is not a QDRO because a successor in interest is not an “alternate payee” within the meaning of ERISA. Accordingly, we reverse.

Factual and Procedural Background

Janet D. and Gene T. Shelstead married on June 16, 1973. During the marriage, Gene earned pension credits and became a vested participant in Carpenters Pension Trust for Southern California (CPT), a multiemployer trust fund governed by ERISA. Upon retirement and…